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What are the insurance requirements?

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are:

$25,000 bodily injury/person/accident
$50,000 combined bodily injury/accident
$25,000 property damage/accident or a combined single limit of $75,000/accident
(Section 402-12-392, Code of Alabama 1975)

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are: $25,000 bodily injury/person/accident $50,000 combined bodily injury/accident $25,000 property damage/accident or a combined single limit of $75,000/accident (Section 402-12-392, Code of Alabama 1975)
Related FAQs in Dealer License, General
Motor vehicle dealers must electronically update their dealer license information using the Motor Vehicle License Portal. A new insurance certificate must be provided for the new location. Retail dealers must also furnish photographs of the new location and signage.
All dealers are required to become a designated agent.
Licenses are not mailed. When your application has been approved, you will receive an email instructing you to login to the system and print your license.
Designated Agent Qualification Requirements: Licensed Alabama Motor Vehicle Dealers must have a current Dealer License. Licensed financial institutions – Submit a copy of their Title 5, Chapter 19, State Banking License or equivalent. Pawnshops – Submit copy of Alabama Pawnshop License. Insurance companies Towing companies Out of state financial institutions (manufactured homes only) – Submit copy of company’s State business or regulatory license. Law Firms (manufactured homes only) – Submit copy of document evidencing that a principal of the firm is admitted to the State Bar. Title Agents (manufactured homes only) – Submit copy of certificate of authority issued by the Alabama Department of Insurance. Access the designated agent package (ALTS).Please note: the dealer regulatory license bond satisfies the designated agent bonding requirement. Non-dealers are required to post a surety bond in the amount of $50,000, payable to the State of Alabama. When a completed package is received by the Department, the designated agent account will be set up in ALTS and a designated agent certificate will be sent to the applicant. All designated agents are required to attend complete a training course before their ALTS account is activated and they are allowed to process title applications through ALTS. Upon activation, the administrator can create additional users for the dealer and submit title applications.
Passwords are not stored in our system, please click on “Reset Password” an email will be sent with a temporary password and you will be prompt to change it when you logon. You can also click on “forgot password” if security questions have been answered.
No. The applicant must have an established place of business in Alabama. Please click on the link below for the established place of business requirements. https://revenue.alabama.gov/wp-content/uploads/2017/05/810-5-12-.01.pdf